BEAVERTON, Ore. - WiSA Technologies, Inc. (NASDAQ: WISA), a company specializing in immersive, wireless sound technology with a current market capitalization of $16 million, announced its definitive agreement to acquire CompuSystems, Inc. (CSI), a leading service provider for live event management. According to InvestingPro data, WiSA currently maintains a healthy liquidity position with a current ratio of 2.26, though the company's overall financial health score is classified as WEAK. The acquisition is part of WiSA's strategic move to enhance its offerings by integrating CSI's expertise with Datavault's ADIO technology.
CSI is projected to contribute $13 million to $15 million in revenue and $3 million to $4 million in EBITDA for the year 2025. This potential revenue boost comes at a crucial time, as InvestingPro analysis shows WiSA's current revenue at $2.19 million with a -15% year-over-year decline. WiSA's CEO, Brett Moyer, expressed optimism about the financial impact of the acquisition, anticipating strong revenue and EBITDA contributions in 2025. For comprehensive analysis of WiSA's valuation and growth prospects, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.
The collaboration will see the activation of ADIO technology for 1.4 million event attendees and will advance WiSA's Web 3.0 data monetization strategy, utilizing CSI's extensive event data assets. This strategic move comes as InvestingPro identifies the company's rapid cash burn rate as a key concern, with negative free cash flow of -$16.03 million in the last twelve months. ADIO's crypto anchor and mobile market technology will be incorporated into CSI's M3 Expo Wallet App, with a rollout starting in January 2025.
Mark LoGiurato, CEO of CompuSystems, highlighted the opportunity to scale their M3 platform and enhance event organizer value through advanced Web 3.0 data analytics, building on CSI's 48-year history in the global events industry.
The transaction's financial terms were not disclosed, but the closing is expected on or about January 31, 2025, subject to customary conditions. A conference call to discuss the transaction is scheduled for Monday, December 30, 2024, at 11 am ET.
This announcement is based on a press release statement and contains forward-looking statements regarding the acquisition's anticipated benefits and projected financial contributions. WiSA Technologies, Inc. is headquartered in Beaverton, OR, with a mission to deliver wireless sound experiences for a variety of content through partnerships with leading consumer electronics brands.
In other recent news, WiSA Technologies has had significant developments. The company reported a substantial increase in Q3 revenues, which reached $1.2 million, marking a 240% rise year-over-year. This growth was attributed to improved gross margins and a shift towards direct-to-consumer sales. WiSA Technologies also reduced its inventory by 17%, ending the quarter with a robust cash position of $3.9 million.
Additionally, WiSA Technologies confirmed the acquisition of intellectual property and technology assets from Data Vault Holdings Inc. Upon completion, WiSA Technologies will be rebranded as Datavault Inc., pivoting to a data technology and licensing firm. The company's new Data Sciences division will license high-performance computing software and Web 3.0 data management tools to a range of industries.
The company also confirmed the effective resignation of Mr. Gary Williams, with Mr. Stanley Mbugua succeeding him as the new Chief Accounting Officer. Furthermore, the company extended the warrant exercise period, a strategic move to encourage warrant holders to participate in the exercise process, potentially increasing the company's equity base. These are recent developments, indicating the ongoing strategic moves and managerial decisions within WiSA Technologies.
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